Tax avoidance on a 5 figure sum ?

D1zzy

Aegis wrote: »

This would not count as a gift at all, so it would instead be tax evasion. If someone wants to do this, they have to gift the money without reservation, so any form of agreement drawn up to return the money after a certain time would invalidate the point of gifting to someone else to begin with.

Doesn't this make it an interest free loan - which as far as I can see has no tax implication (other than the tax on savings interest), and which would be repayable from the estate so no IHT issue, and would be excluded from the care home fees calc, - not sure about benefits

DiggerUK

luvpump,
Apart from cash ISA's and some National Savings, there is only UK legal tender gold coins that allow you to avoid tax on savings.
UK gold is VAT free going in, and Capital Gains Tax (CGT) free coming out.
Non UK legal tender coin, or gold bullion, is only useful if you do not exceed your annual CGT limit when selling.

If you have children, then you have opportunities to open A/C's in their name and gain certain tax free benefits. But that has a time limit on it. Usually till they are 16 or 18.

Seasons greetings and best of fortune to all.

luvpump

Stavros wrote: »

HMCR watch this site, they have the most amazing I.T technology too, they make the t.v programme Spooks look really antique when it comes to tracing people on the internet, remember, every computer leaves a trace lol

:rotfl: If my question had been along the lines of ..... "I have just obtained several million quid by dubious means, please help me launder it" I might agree, but ime sure HMRC has better things to do than spy on people trying to save a few hundred

agsnu

DiggerUK wrote: »

luvpump,
Apart from cash ISA's and some National Savings, there is only UK legal tender gold coins that allow you to avoid tax on savings.

I fail to see how gold is related to savings.

luvpump

Thanks for all you v helpfull advise !.. Mind you ime thinking it might be more trouble than its worth :rolleyes:

G_M

To protect yourself against the possibility of their not gifting it back later, draw up a contract which you both sign, to say the recipient will return it in (X) years.

To protect yourself against a tax demand, send a copy of the contract to HMRC.

dzug1 wrote: »

There's no contract there - no consideration, therefore not enforceable as a contract.

Who is getting the interest? The recipient of the gift presumably - if he 'gives' it back to you then that brings it straight back into the realms of tax. So you have to give away both the capital and the interest to stay out of tax.

And if the recipient of the gift is not your spouse then there are (potentially) IHT implications.

And I suspect sending a copy of the so-called 'contract' to HMRC might have the opposite effect of that desired.

Oh dear! :rotfl::rotfl::rotfl::rotfl::rotfl: I think (hope!) most people would've realised that! It couldn't really BE more obvious could it!???

poppyoscar_3

I thought you could only 'gift' £3000 in any tax year. Has that changed?

RayWolfe

You are confusing Inheritance Tax rules with the rules for giving gifts ... there are none.

sorcerer

Stavros wrote: »

HMCR watch this site, they have the most amazing I.T technology too, they make the t.v programme Spooks look really antique when it comes to tracing people on the internet, remember, every computer leaves a trace lol

Ha Ha, yeah right, my friend works in their IT area, and he says, their computers are a load of all rubbish mainframes, and systems that can't be linked together to analyse people's data from different departments.

nzseries1

sorcerer wrote: »

Ha Ha, yeah right, my friend works in their IT area, and he says, their computers are a load of all rubbish mainframes, and systems that can't be linked together to analyse people's data from different departments.

It's a government department - therefore this sounds much more logical! :rotfl: